presentation by ambika p. adhikari, dr. des., aicp...
TRANSCRIPT
NATIONAL DEVELOPMENT:
CHALLENGES AND
OPPORTUNITIES FOR
DIASPORA
Ambika P. Adhikari, Dr. Des., AICP
Program Manager (Research),
Sr. Sustainability Scientist, and
Faculty Associate
Arizona State University
Diaspora in Development International Conference: New Mexico State
University, Las Cruces, NM, USA. March 22, 2014
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Objective of presentation
Meaning of Diaspora and Development
Emerging concepts on Diaspora’s role in developing native lands
View of International Organizations on the topic
Examples of Africa and Asia
Case study of Nepali Diaspora
Achievements and challenges of the Nepali Diaspora
Opportunities and Challenges for Diaspora
Summary
Presentation by Ambika P. Adhikari, Dr. Des., AICP
What is Diaspora
“a group of people who live outside the area in which they had lived for a long time or in which their ancestors lived” – Merriam-Webster Dictionary
“The dispersion of any people from their original homeland”- Oxford Dictionary
Three main characteristics:
Dispersion
Homeland orientation
Boundary (identity) maintenance
Indian Diaspora Strength
Source: Gateway House Indian Council Quoted in Blog Y-Axis
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Some numbers related to Diaspora
215 million people (3% of the population) live outside their land of origin (2013)
Global remittances is US $500 billion (2012) (World Bank) – outstripped official global aid total
Major destinations for all – OECD countries
For Asians – USA, Canada, UK, Australia, Japan
Middle East and North Africa – France, USA, Spain
Largest supplier nations – India, China, Philippines, Mexico, Egypt, Nigeria, Somalia
Most educated migrants in OECD countries are from India, UK, Philippines, China and Germany
In the US, 62 million (20%) of the populations first and second generation diasporas (2012) – largest in any country
Mobility of Scientists
Source: Nature.com 10.17.2012
Presentation by Ambika P. Adhikari, Dr. Des., AICP
What is Development
Includes:
Economic development. “Economic Development...is most commonly described as the creation of jobs and wealth, and the improvement of quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well being of a community.” – IEDC
Increased businesses and trade
Increase in investments
Resulting in higher standard of living
Social development
Enhanced economic and social indicators
Cornell University College of Art,
Architecture and Planning Website
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Emerging views of international
organizations on Diaspora
Institutions recognizing the catalytic role of Diaspora: UN system, Migration Policy World Bank, Regional Banks, Academia, Investment Banks, International businesses
Remittance-based Economy vs Sustained Development
Solid evidence available for diaspora’s role in development – reducing poverty, transferring skills
Governments have not cashed on the potential of mobilizing the Diaspora
Donor agencies have ignored the blind-spot for a long time, but have begun to appreciate the opportunity
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Why Diaspora is More Effective
“Diasporas can and, in many cases, do play an important role in economic development of countries of origin or ancestry. Beyond sending remittances, they can also promote trade and foreign direct investment (FDI), create businesses and spur entrepreneurship and transfer knower and skills.” – Migration Policy Institute
They know the culture and ground reality
They have inherent networks inside the native land
They have emotional reason to give back – some guilt of leaving the country and some altruism to one’s own people
They have first-hand experience of the social, cultural and infrastructural circumstances in the native land
Source: Caribbean Diaspora in Sc. Tech. and
Innovation. CDSTI.org
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Flagship Examples
Taiwan, Korea, Ireland, Israel, China, India, Mexico, Philippines
Key areas of support:
Remittance
Technology transfer
International business and trade
Foreign Direct Investment. NRI invested $500 million 1998-2001
Returning Diaspora- 800,000 in China during 2007-2012
Creating international network for trade, technology and business
In 2013, top countries receiving remittances were India, China, Philippines, Mexico and Nepal (in terms of the percentage of GDP)
Mexico, Mali and Philippines have 10% of their population abroad.
Chinese and Indian Diaspora,
Source: The Economist Nov 19, 2011
Presentation by Ambika P. Adhikari, Dr. Des., AICP
African Diaspora and Economy
Diaspora from several African countries (E.g., Kenya, Morocco, Tanzania, Nigeria, Uganda, Rwanda, Somalia, Congo Eretria and Burundi) have settled or work in Europe, and North America
Support Native lands through:
Africa accounts for 11% of global remittances
The total remittances were around 65 billion USD in 2013 (African Economic Outlook website 02-28-2014)
Example: Remittances make up 36% of Lesotho’s GDP. In many other countries, remittances constitute around 10% of their GDP.
Source: Living Legacy Journal
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Nepali Diaspora
Economic clout
US/Canada: 300,000 x $60,000 = $18 billion annual GDP (US and Canada GDP/capita = $52,500/yr - 2013)
World wide: 3 million x $15,000 = $45 billion annual GDP
Nepal GDP 2012 = US$ 19 billion (World Bank)
A very high credit potential of the Diaspora members
Retirement funds = 300,000 x 75,000 = $225 billion
NRN remittances = 26% of Nepal’s GDP (2013)
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Experience of Nepali Diaspora
Informal support to Nepal by the Diaspora since several decades
More than 10% of Nepal’s population lives outside Nepal (excluding in India)
In 2003 the Diaspora formed a global organization – NRNA
NRNA has made significant technical, investment and philanthropic support to Nepal
NRNA is pushing for innovative ways to have more leverage for global investments.
Presentation by Ambika P. Adhikari, Dr. Des., AICP
NRNA Successes
Network of NCCs in 66 countries and growing [my take - World Bank without the money]
Registered NRNA Association in Nepal – Non-Profit
Mobilization for collective investment in Hydro-power
Open University Initiative; Nepal Science Foundation, Nepal Library Foundation
Large scale philanthropic activities – several charitable programs
Source: NRNA Website. New NRNA President Mr. Shesh Ghale
and others (above) and NRNA blood donation program (below).
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Challenges for NRNA
Problems of migrant workers still rampant – 400 died in Qatar only since 2011
Open University Initiative still languishing in bureaucratic and political labyrinth
Investments have only a limited impact
High expectation of Nepalis of NRNA vs limited product delivery of NRNA
Limited entry of professionals and academics in the organizational leadership
Problems in financial sustainability of the secretariat
Dr. Pramod Dhakal of NRNA Presenting OUN project.
Kathmandu Sep 2011. Nepali workers in the Gulf (above)
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Challenges and Opportunities for
Diaspora Generally
Effective role for Diaspora in foreign policy recognized by advanced countries
In China alone, in 2012, more than 272,000 students who studied outside have returned.
Considered diplomatic bridge
Leverage them as assets by both sides
New market creation – investments in rich countries
E.g. African themselves are largest donors to Africa
Governments too slow to mobilize diaspora – ministries for diaspora needed
Source: JACANA Partners website
70% of MBA grads abroad wish
to return to Africa. 35% wish to
start their own business
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Examples of best practices and
Innovation
India’s Ministry of Overseas Indian Affairs (MOIA)
Ministry of Malians Abroad
Institute for Mexicans Abroad (IME)
Non-resident Nepalis Association (NRNA)
Overseas Workers Welfare Administration (OWWA) – Philippines
Ministry of Expatriate Affairs, Yemen
Foundation for Moroccans Residing Abroad
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Some Recommendations
Diaspora Associations to be
strengthened, and made
sustainable to help the Diaspora in
development
Home countries to establish
research and mobilization services
for Diaspora
Host countries to take due note on
the value of Diaspora in their midst
Win-win programs to be developed
where sentiments, emotions, intimate
knowledge of the home turf and
need for development converge
Sometimes it is just connecting the
dots to get a better picture
Economic Diplomacy
Approaching donors to promote Diaspora’s involvement in native countries as consultants
TOKTEN revival?
Establishing institutions and Foundations in country and abroad for Diaspora welfare
Example: Gorkha welfare council in India
Self-sustaining organizations
Councils that can promote and support the Diasporas
Native governments and societies aware of the opportunities with the Diaspora to be explored.
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Conclusions
Diaspora’s role is being increasingly recognized
Large and organized Diaspora can help uplift native lands. In India, the Diaspora FDI 1998-2001 was $500 million
Potential underutilized so far by all countries
Need to think beyond remittance
Nepal’s example has mixed successes/failures
Diasporas posses inherent advantages as development catalysts for native lands
They are also important resources for adopted countries
They can help in diplomacy, business and investment for both sides
Presentation by Ambika P. Adhikari, Dr. Des., AICP
Thank you.
Questions and
Discussions
Contact:
Ambika P. Adhikari, Dr. Des., AICP
Arizona State University
Phoenix, AZ, USA
NRNA Open University Delegation meeting with Nepali PM Dr.
Bhattarai in Kathmandu, October 2011
Presentation by Ambika P. Adhikari, Dr. Des., AICP